The Best of Both Worlds By Robert Warne - July 16, 2002Deregulation in Japan’s property and casualty insurance market has opened the door to a new age of rising sun insurance conglomerates.
Most recently, July 1, Yasuda Fire and Marine Insurance Co. and Nissan Fire and Marine Insurance Co., merged to become Sompo Japan Insurance Inc. The combination of both companies has positioned Sompo as Japan’s second largest property and casualty insurer.
The U.S. branch of the corporation is Sompo Japan Insurance Company of America and is headquartered in New York City. Licensed to write insurance in all 50 states, through its regional offices, Sompo plans to deliver to its global clients the professional services required in the U.S.
The Yasuda office in Los Angeles and the Nissan office in San Bruno are now Sompo offices. Larry Black oversees the claims operations in California and is now the vice president of claims. The old Nissan office in San Bruno remains open, but is currently not a claims office.
Also effective January 1, Sumitomo Marine and Fire Insurance Co. merged with Mitsui Marine and Fire Insurance Co. The new entity, known as Mitsui Sumitomo Insurance Co. is now Japan’s third largest non-life insurer. A third party administrator called Garmi, Inc. was also organized during the transaction. Garmi is intended to operate as an independent profit center providing service to clients, as well as offering support to Mitsui’s claims departments.
As part of the merger, Mitsui acquired the entire Japanese division of Great American Insurance Co. in the U.S. The two offices in California affected by the transaction were in Pleasanton and Orange.
The Great American employees in those offices were part of the deal, much like when a person buys a sports team; the players come with the team. Livia Ferrari is still the director of claims in Pleasanton, and Stephanie Miller retained her position as claims manager in Orange.
Now part of the Mitsui family, the Sumitomo Marine Management USA office in Universal City remains in tact. Claims Manager Sid Rodriguez continues to run the show in that location.
Both Sompo and Mistui plan to expand their American offerings. These two new shogun insurers were created out of companies that survived a lengthy slump in the Japanese economy combined with the challenges of deregulation.
Who knows, success may await them if they can avoid the Americanized California claims rolls and stick to the straight sashimi claims. |